Net income rose 48.3% and diluted EPS 49.2% against a year earlier, mostly because Q3 2025 carried merger costs 38. The company-defined adjusted EPS rose from $0.84 to $0.96, while net interest margin fell 7 bps from the prior quarter 16.
Atlantic Union Bankshares Corp · Q3 2026 · Reported 20 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Pre-tax income | 173.15 | 116.28 | +48.9 % |
Net income | 136.63 | 92.14 | +48.3 % |
Diluted EPS | 0.94 USD/share | 0.63 USD/share | +49.2 % |
Figures in USD, as reported.
The headline jump owes most to a year-earlier base weighed down by merger costs
Net income was $136.63M against $92.14M a year earlier (+48.3%), and diluted EPS was $0.94 against $0.63 (+49.2%) 1638. Pre-tax income rose 48.9% to $173.15M. The Q3 2025 base was depressed by merger-related costs of $26.9 million and a $3.7 million loss on a CRE loan sale, both net of tax 16.
On the company-defined adjusted basis, which also strips this quarter's $2.0 million after-tax loss on debt extinguishment, operating EPS was $0.96 against $0.84 a year earlier, and adjusted operating earnings available to common shareholders were $135.6 million against $119.7 million 16. The underlying gain is real but much smaller than the GAAP figures suggest. Management says that, excluding the redemption expense, performance shows the earnings power it has built 8-K.
Net interest income is up on a year earlier, but the margin slipped from the prior quarter
Net interest income was $328.4 million, up $9.2 million from a year earlier, on lower deposit costs after the Federal Reserve's 75 bps of rate cuts between September and December 2025 and on loan growth 22. Net interest margin was 3.82% against 3.77% a year earlier, and cost of funds was 2.01% against 2.17% 21.
The direction reversed against the prior quarter. Net interest margin fell 7 bps and cost of funds rose 7 bps, which the release ties to interest-bearing customer deposits, brokered deposits and borrowings 8-K. Borrowing costs also rose because the 2029 and 2036 subordinated notes overlapped 8-K. The $250.0 million 6.25% issue replaced $168.0 million of notes that carried 6.53% at redemption 14. In September the FOMC raised the target range by 25 bps to 3.75% to 4.00% 15.
Credit costs fell mainly because a year-earlier charge-off lapsed, though past dues rose
The provision was $5.7 million against $16.2 million a year earlier and $11.7 million in the prior quarter 8-K. Net charge-offs were 0.03% of average loans (annualized) against 0.56% a year earlier, a quarter that included two commercial and industrial loan charge-offs 8-K. Nonperforming assets were 0.37% of loans, down 12 bps from September 2025 8-K.
Accruing past-due loans reached 0.34% of loans, up from 0.28% in the prior quarter and 0.27% a year earlier 8-K. The increase was mainly in non-owner occupied CRE, commercial and industrial, and owner occupied CRE loans 8-K. The allowance was 1.14% of loans against 1.15% in the prior quarter 8-K.
Fee income gained on reported figures but fell on an adjusted basis
Noninterest income was $54.8 million, up 5.9% from a year earlier, but that quarter included a $4.8 million pre-tax loss on the CRE loan sale 37. Excluding it and securities gains, adjusted operating noninterest income fell 3.1%, on lower equity-method income, swap fees and mortgage banking 8-K. Fiduciary and asset management fees rose $1.9 million on higher assets under management 37.
Noninterest expense was $204.3 million, up $5.2 million from the prior quarter, including the $2.7 million pre-tax debt extinguishment loss 8-K. AFS net unrealized losses were $475.0 million against $295.7 million at December 31, 2025 18. The release says the AOCI hit more than offset earnings in the common equity ratios 8-K.
What to watch next
Whether cost of funds, up 7 bps from the prior quarter to 2.01%, keeps pressuring net interest margin after the September rate increase 8-K.
Whether accruing past-due loans, 0.34% of loans against 0.28% in the prior quarter, convert into nonaccruals, given the increases in CRE and commercial and industrial loans 8-K.
The pace of buybacks: $62.5 million in the quarter, with $177.5 million left under the program, set against AOCI losses on securities 8-K.
The report does not give operating cash flow.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.